Ray White Keevers Group

T he first half of 2021 has not only seen some significant movement in house price but also home loan interest rates. Who would have thought that we would be discussing 4 year fixed interest rates at less than 2.00%? According to the Australia Bureau of Statistics, the increase in home loan applications nationally resulted in Australia’s new home loan commitments reaching a record of $31B in April 2021 which is up from $18B in 2020. Interestingly, WA only represented approximately $2.15B of that figure in April 2021, which was a decline from the January 2021 figure of $2.75B Unfortunately, the national increase in lending resulted in many lenders taking longer to assess a loan application which created much angst as people rushed to get their finance approved by their contract deadline. This is why many in the industry are keen to see the proposed changes to credit legislation which will Paul Hamilton 0400 815 152 paul@coastalloans.com.au Hillarys Shopping Centre, Flinders Ave, Hillarys remove much of the red tape people experience when seeking finance. So where to for the second half of 2021? The last 2 months have seen many lenders increase their fixed rates. Whilst the RBA announced earlier in the year that the cash rate would remain at 0.10% until 2024, many economists are taking a different view. With pressure on funding costs for lenders and potential inflationary pressure when the construction spendathon starts at the end of 2021, who knows what the outcome will be. If you would like to discuss your finance requirements, feel free to drop into my office, give me a call or send an email. connect with me...